US stocks fell sharply on Wednesday (14th), and bitcoin, which was seen as a safe-haven asset by the market, was not spared. According to bitcoin trading platform Bitstamp, Bitcoin fell below the threshold of 10,000 yuan (US$ ‧ the same) for the first time in half a month.
Bitcoin reported $9,891 at 4:11 this afternoon, down 6.5%. This is also the first time Bitcoin has fallen below the $1 mark in half a month. Bitcoin quickly lost the title of safe-haven assets given to it by supporters in recent weeks. The largest cryptocurrency has also joined the downward trend of global risk assets, and some smaller cryptocurrencies have fallen. More tragic.
Bitcoin had risen against the trend when the US stock market plummeted earlier this month, but it has now fallen along with the stock market. It fell about 14% this week, approaching around $10,200. Bitcoin last time was less than 10,000 yuan on August 1, and on June 26 it climbed to $13,852. Ethereum fell by as much as 12% on the 14th, and XRP fell by as much as 20% in the sudden sell-off in the afternoon.
“Bitcoin has retreated most of last week’s gains and is now back to the original point. This is foreseeable and reasonable,” said Jeff Dorman, chief investment officer at Los Angeles asset management firm Arca. Arca invests in cryptocurrencies and other digital tokens.